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Short Narrative & Justification on Project

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Short Narrative & Justification on Project Short Narrative & Justification on Project 1) M/s NMDC LIMITED Incorporated in 1958 as a Government of India, public sector enterprise under the administrative control of the Ministry of Steel, Government of India. It is a profit making and dividend paying “NAVRATNA" Public Sector Enterprise. 2) NMDC India's single largest iron ore producer, presently producing about 34 million tons of iron ore from 3 fully mechanized mines viz., Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State) and Donimalai Iron Ore Mines (Karnataka State) which are awarded ISO 9001-2008, ISO 14001-2004 and OHSAS 18001-2007 certification. NMDC has made valuable and substantial contribution to the National efforts in the mineral sector during the last five decades. 3) The story of NMDC is woven around the dreamy hills and the deep jungle land of Bastar in Chhattisgarh, known as Dandakaranya from the epic periods. The entire area was brought to the mainstream of civilization by the spectacular effort of NMDC by opening-up of mines in the remote areas of Bailadila Range in the year 1968. 4) The Bailadila hill range consists of number of iron ore deposits namely Deposit: 1 to Deposit-14. 5) Bailadila Deposit-14 ML is one of the iron ore deposit identified for commercial exploitation of Iron Ore. 6) NMDC Limited accorded Mining lease for Bailadila Deposit–14 ML on 11.09.1965 for a period of 30 years. The Deposit-14ML comprises of Deposit-14. After creation of necessary infrastructure etc., highly mechanized mining operations were commenced in April 1968 for exploitation of iron ore. 7) MoEF, New Delhi accorded Forest Clearance vide letter no. 8-41/97-FC dated 18-06-1999 at the time of 1st renewal of Mining lease (1995 to 2015) over an area of 322.368 ha forest land. The period of permission under the FC Act 1980 is for 20 years co-terminus with lease under MMRD Act, 1957 w.e.f date of expiry of previous lease. Thus, the 1st ML renewal period is valid till 11.09.2015. 8) As per the provisions of Forest Conservation Act 1980, the renewal of Mining Lease in forest area again requires approval of MoEF under section.2 of F.C. Act, 1980. 9) Therefore, NMDC is applying application in FORM-B under F.C. Act, 1980 for obtaining forest clearance for 2nd renewal of mining lease (period: 12.09.2015 to 11.09.2035) over an area of 233.223 Hectares of reserve forest land with State Forest Department, Government of Chhattisgarh. 10) There is no change in ML area, which remains same as per the Forest clearance accorded vide letter dated 18/6/1999. 11) The whole of the mining lease area falls in the Bailadila Reserve Forest, Bacheli forest range, Dantewada forest division in South Bastar Dantewada District. 12) Deposit 14 ML area falls in Survey of India (SOI) Topo Sheet No. 65 F/2.The entire mine lease area is in the forest compartment no.s 1863(624), 1859(627), 1861(626), 1858(629), 1857(637),1860(639), 1864(628) of Bailadila Reserve Forest. 13) Bailadila is easily accessible and well connected to Raipur, Visakhapatnam and Hyderabad by all-weather roads. It can also be reached by rail from Visakhapatnam. There is regular iron ore movement from this sector to Visakhapatnam port by rail. The railway line, known as Kirandul- Kottavalasa (KK) line runs at the foot hills of Bailadila deposits. 14) The Deposit 14 ML is located between Latitude N18º36’11.2022” to N18º 37’34.6006” and Longitude E81º 13’15.9460” to E81º14’44.6788”. The strike of ore body of Deposit-14 ML is NNW-SSE and dips 80-850 towards east its strike length is 1.5 km. The total reserves are 378.81 million tones with an average Fe grade of about +65%. The rated production capacity is 5 million tonnes per annum. The life of the mine is 76 years from 01.04.2012 based on reserves. The topography of the area is hilly terrain. Highly mechanised iron ore mining operations are being carried out in the above lease area for exploitation of iron ore. The mining in Deposit 14 ML is carried out on the hill top from 1167 MRL to 813 MRL. The vertical extension of ultimate pit limit shall be from 1157 MRL to 813 MRL with an area of 191.062 ha. 15) Mining & Processing: Drilling is done with 250 mm electric blast-hole drills and 100 mm crawler drills. Blasting is done by using slurry explosives; detonating cord and cord relays (50 m and 25 m) NONEL (Raydet/ Excel) is also used in selected areas. Excavation along with the loading of broken ore is done by shovels of 5 m3/8.8 m3 capacities. 50 T/ 60 T capacity rear- dumping tucks are used for haulage of ore to crushing plant and for waste disposal. The iron ore from the mines is fed to the crushing plant-14 and is crushed by primary gyratory crusher (60” x 89”) to size (-) 300 mm. The + 150 mm fraction is further crushed by a secondary crusher to size (-) 150 mm. Both the primary and secondary crushers are installed at Deposit –14 hill top. The entire crushed ore in size (-) 150 mm is transported downhill through conveyer system to secondary stock pile of the existing screening plant SP-I at Kirandul. In the screening plant, the ROM ore is fed to double deck primary screens. The undersized ore passed to the secondary screens with 10 mm top decks and 3 mm bottom deck. The – 150 + 10 mm fraction of the total ROM ore is classified as Lump Ore. Part of the lump ore, falling between the size range 30 mm and 10 mm is separated as calibrated lump ore. The –150 + 10 mm lump ore fraction is fed to tertiary crushing plant of screening plant-II as per the requirement. The cone crusher of TCP reduces the feed to –30 mm (Calibrated Lump Ore). The CLO, Lumps and fine ore is transported by a set of conveyor to loading plant at Kirandul. 16) Environmental clearance obtained on 11th September 2007 from MOEF for capacity expansion of Bailadila Deposit-14/11C from 9.3 MTPA to 12 MTPA ROM. 17) Environment Management The mining and allied activities are carried out in eco-friendly manner. The details of the pollution control measures being implemented are: Wet drilling during primary & secondary drilling Regular water sprinkling over the haul road as well as mine benches Dust suppression by pressurised spray in primary crusher Covering of conveyors & using under chutes at all transfer points Haul roads are graded regularly to clear accumulation of loose materials & kept wet with water sprinkling Annual plantation Buttress walls at the toe of the waste dumps Effluent treatment plant for service centre effluents Surface run off and process water are routed through a series of check dams to Kadampal Tailing Dam Regular mechanised desilting of check dams and tailing dams Environmental quality monitoring covering 4 seasons in the year for air quality, water quality, water flow, noise levels, soil quality 18) Demand & Supply: India has large and rich potential of iron ore both in terms of quality and quantity. Hematite and Magnetite are the most important iron ores in India. Indian Steel sector was liberalized in 1990s and thereafter, several pig iron plants, sponge iron plants and integrated steel plants have been setup in private sector. For the purpose of meeting domestic and export requirements of iron ore, NMDC developed iron ore mines in the Bailadila range of hills in the southern part of the South Bastar Dantewada district of Chhattisgarh state. Iron ore remains the most crucial driving force for the steel industry in India and the industry‘s growth so far can largely be attributed to the domestic availability of low cost and high quality iron ore. Domestic consumption of iron ore in India was 111 million Tonnes in 2010-11. About 98 per cent of the iron ore globally is estimated to be consumed in the production of iron and steel. (Source: 12th Plan, Planning Commission of India Report) The main concern of the Indian steel industry is to sustain the domestic iron ore advantage well into the future for continuing global competitiveness. The high export demand in the past several years has driven up the production base in the country, leading to an output level far above domestic demand. As per the National Steel Policy 2005, 190 million tonnes of iron ore required for indigenous production of 100 million tonnes of steel by 2019-20 at 100% capacity utilization of steel plants. There is an increasing demand of iron ore from Bailadila sector from various domestic steel/ sponge iron plants. In domestic market, the important customers are Bhushan Steel, Bhushan Power, Godavari, JSWI, JNECO, Ma Mahamaya, Monnet Ispat, SAL Steel, SKS Ispat, Steel Exchange, Sunflag, Vandana, VSP, Essar, KIOCL etc. In addition, the export demand is also very strong. 19) Benefits of the project: The BIOM Kirandul Complex has contributed more than Rs.324.532 crore in Government Exchequer during the F.Y. 2012-13. The head wise major contribution in government exchequer during the F.Y. 2012-13 is summarised below: S.No. Details Amount (in Rs. Crores) State Government Exchequer 1 Royalty 251.04 2 Infrastructure and Environment Improvement Cess 6.32 3 VAT 17.04 4 Other taxes (surface rent, dead rent, stamp duty, vehicle tax, air and 1.992 water pollution cess, property tax and WCT contractors etc.) Sub Total 276.392 Central Government Exchequer 1 Sales tax 35.54 2 Income tax from contractors 2.02 3 Income tax from salaries 8.24 4 Others 2.34 Sub Total 48.14 Grand Total 324.532 20) In addition to above, Deposit-14 ML is also contributing to State Government exchequer by payment of Forest Transit fee under the Chhattisgarh Transit (Forest produce) Rules, 2001 at the rate of Rs.7/- metric ton on transport of Iron Ore.
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